Latin America-focused steelmaker Ternium’s net revenues for its Mexican business in Q4 rose 10 percent, year-on-year, to $1.4 billion, the company said while announcing its quarterly and full-year results.
Ternium said steel sales volumes in Mexico in Q4 dropped 6 percent, year-on-year, to 1.52 million mt.
The steelmaker said net revenues for its Southern Region business in Q4 was $474.3 million, 23 percent down, year-on-year. Steel sales volumes for the Southern Region fell 22 percent in Q4, year-on-year, to 505,100 mt.
As for its Other Markets business, net revenues in Q4 declined 8 percent, year-on-year, to $653.3 million, while steel sales volumes totaled 935,200 mt, 19 percent down, year-on-year.
Ternium reported a net profit of $435.4 million in Q4, 120 percent up, year-on-year, from the same quarter of the year prior. As for the full-year of 2018, Ternium said net profit was $1.6 billion, 62 percent up, year-on-year.
Ternium said the expected ratification of the United States Mexico Canada Agreement (USMCA) in 2019 and an “eventual agreement” on the Section 232 import tariffs among the current NAFTA partners should “help normalize steel trade flows in this region.”
“This result would have a positive effect on Ternium’s business in Mexico, which is the company’s main steel market, as current trade conditions are placing undue strain on the Mexican market,” the company noted.
However, the company said, “weak public and private investment in Mexico will continue to negatively affect the country’s construction market.”